Subordinations

The City of Madison's Community Development Division will consider a loan subordination request where the subordination results in one of the following:

  1. Non-cash out simple refinance, such as interest rate reduction, and/or there is a mortgage loan product change (e.g., when a balloon or adjustable rate mortgage (ARM) matures and the owner switches to a fixed product). The new first mortgage loan cannot exceed the current mortgage loan balance secured ahead of the CDD loan (excluding reasonable lender fees).  
  2. Cash out can only be used for home improvements.

Additional Information for Lenders

Subordination Checklist

City of Madison Subordination Policy - Residential

City of Madison Subordination Policy - Rental, Multi-Family, Facility

Was this page helpful to you?